Combine water, 1/4 cup of the melted butter, the vanilla pudding, 1 cup of the warm milk, the egg, 1 tablespoon of the sugar, salt, the bread flour, and the yeast in the pan of the bread machine then turn Dough cycle on.
Stir togeher brown sugar, cinnamon, and pecans.
Once Dough cycle is completed, place dough on a floured surface and roll it into a rectangle that is about 17x10 inches. Use the softened butter to spread the dough. Sprinkle the brown sugar mixture from previous step over the dough.
Butter the baking pan with melted butter.
Bake rolls in preheated oven until browned, which will take somewhere from fifteen to twenty minutes.
Stir together cream cheese, 1/4 cup softened butter, confectioners' sugar, the vanilla extract, and 1 1/2 teaspoons milk.
Once rolls are cooked and cooled, spread frosting over them.